Further decline expected for dollar, gold
By Reza Abesh Ahmadlou
Staff writer
In recent days, due to the decrease in the global price of gold accompanied with a descending trend for the exchange rate of the dollar as the downward trend has intensified and prices have returned to the rates of last Iranian year, which ended on March 20.
Experts believe that speculations about the reduction of tensions with the West, the release of a part of Iran’s frozen assets, the release of European prisoners, the re-normalization process in the region between Iran and Saudi Arabia, and Tehran’s green light to Cairo to resume bilateral relations have all been effective in creating this downhill trend of the dollar exchange rate.
But evidence shows that the government’s policies to regulate the currency market and create stability are the main factor in forming the current condition.
The U.S. dollar has reached 417,000 rials.
Analysts of the gold market in Iran believe that demand for the precious metal is at its lowest levels in a year despite falling prices.
The global price of gold reached $1,949 per ounce, which indicates an average decrease of $20 compared to the beginning of the week, said Mohammad Keshti-Aray on Friday.
Iran’s main bullion gold coin, Bahar Azadi, has been trading at prices near 250 million rials over the past days.
Prices of other major currencies also dropped in the unofficial market just as local news agencies and experts attributed the sudden decrease to a government decision in December to appoint a new CBI governor, which allowed for a change in the bank’s monetary and foreign exchange policies.
CBI Governor Mohammadreza Farzin has introduced measures to support the rial, saying that the CBI will definitely intervene to control prices in the foreign exchange market.